Wendy Morton

As set out in the Restoration and Renewal (R&R) Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576), the preferred scope for the R&R works will deliver a permanent Education Centre. Early designs propose that the centre is based within the Palace.

The current Education Centre on the Victoria Tower Gardens site was always intended to be a temporary facility and it is not sited on Parliamentary estate land. The land is owned by the Royal Parks and Parliament’s license for its use is with the Department for Culture, Media and Sport. The temporary planning and license agreements for the Victoria Gardens site expire at the end of 2030. The relevant statutory bodies have said that any further application for extension of the current Education Centre temporary permission and licence will not be granted. A new location for the centre is therefore required after this date.

The proposed Education Centre accounts for 0.3% of Palace construction costs under the full decant option and 1.6% under the enhanced maintenance and improvement plus (EMI+) option. This is based on the base construction costs for the Palace project set out in Annex 2, table 2 of the report, which exclude risk and inflation.

The net reduction in Palace lifecycle costs as a result of the renewal of the Palace does not isolate a specific change for the Education Centre. The cost of refurbishing existing facilities was not considered given their temporary nature and the known requirement to move the facility.

The location of the new education centre has been considered as part of the wider fire strategy, though its provision does not directly contribute to the fire safety, building services, asbestos remediation or fabric conservation outlined in the R&R Client Board’s report.

Under full decant a temporary Chamber would be provided in Richmond House, which Members would decant to and which would enable the House to operate much the same as it does now. Under other delivery options the provision in Richmond House would be to provide space for a resilience Chamber, a place that could be used, for example, as a consequence of any intolerable or unplanned disruption during the R&R works (and could be used for other purposes when not needed as a resilience chamber). It was therefore deemed necessary under all approaches.

The costs that are driven by the need for a temporary (or resilience) chamber as part of the R&R Programme accounts for 13% of phase one works costs. This is set out in chapter 7 of the R&R Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576).

The use of the Northern Estate as a decant location for the House of Commons was re-confirmed in the R&R Client Board’s Strategic Case in March 2024. This location has been consistently identified in numerous reviews and studies as the most suitable location given it is part of the Parliamentary Estate and close to Whitehall, offers value for money, retains the Commons in the secure perimeter and is capable of meeting the House’s security requirements. Other relevant studies include the Joint Committee on the Palace of Westminster, First Report of Session 2016–17, Restoration and Renewal of the Palace of Westminster (HC 659) and the Parliamentary Works Sponsor Body and Delivery Authority, Restoration and Renewal Programme Strategic Review, March 2021.

Regardless of the R&R Programme, the Northern Estate requires refurbishment to ensure it meets modern parliamentary standards, which is being carried out under the Commons Buildings Infrastructure Portfolio. There will therefore be a legacy value to Parliament from the refurbishment of these buildings.

Chapter 4 of the recent report from the Restoration and Renewal (R&R) Client Board, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576) provides information about the full decant option. This is one of two options which the R&R Client Board recommends for further development.

The 19 to 24 year duration for full decant reflects a P50–P80 range and therefore incorporates provision for schedule risks. The Commons Chamber would be decanted to Richmond House for 8 to 10 years under full decant.

Pages 50 to 52 of the Client Board’s report sets out some examples of how parliamentary business would look and feel different under full decant (during the course of the Programme, not in the end-state Palace). These impacts have been considered by both the Member-led R&R Client Board and the R&R Programme Board.

As referenced in the report, decant provision needs to be comparable—as a minimum—to the current provision. For the House of Commons, that means that not only will the Northern Estate need to be refurbished to ensure it is resilient and fit for purpose for increased use over the life of the R&R Programme, but a creative and purposeful approach will need to be taken to identify other opportunities for decant, given that the space available on the Northern Estate is not adequate to recreate many of the Commons’ existing facilities. This will need to be a priority focus of work before a final decision is taken on an R&R delivery approach by mid-2030.

Several Commons committees and the Commission have been engaged about the high-level proposals for temporary accommodation on the Northern Estate. Engagement with Members will continue as designs continue to develop.

A number of other parliaments internationally are undergoing or have completed restoration projects for their parliamentary buildings, for example Canada, Austria, Hungary and the Netherlands, and several of these have had to decant from Chambers for some period of time. The R&R Programme is learning about how these moves operated in practice and were managed as well as the various impacts, including on Members and staff.

Substantial staff decants have already been successfully managed by the House in recent years to a range of buildings with no loss of business service levels and good staff satisfaction, aided by appropriate business change support.

Chapter 7 of the recent report from the Restoration and Renewal (R&R) Client Board, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576) sets out the Board’s recommendation for a package of phase one works, in line with emerging best practice. The phase one works would include up to seven years of expenditure as well as financial commitment for some work started in this period, such as underground construction, which would be completed after seven years.

The phase one works are not an alternative to the full R&R Programme; they are foundational to it, however it is delivered. This means the phase one works do not prejudice a choice between the R&R Client Board’s two recommended options of full decant or enhanced maintenance and improvement plus (EMI+). In developing the phase one proposals, the R&R Programme Board considered a range of down‑selection scenarios and the associated impacts on cost and schedule, ensuring that the proposed package remains flexible and does not commit the Programme to a particular delivery option.

A decision by the Houses on a preferred delivery option would be required no later than mid-2030 to ensure that the Programme has a clear trajectory on the final delivery option that Parliament wishes to take. During the period when the phase one works are being delivered, the Programme will develop more robust estimates and detailed designs with its strategic partners, to help inform the Houses to take a decision on a preferred option in the next Parliament.

The sum for the phase one works is included in the overall costs for the options set out in the R&R Client Board’s report. Normal contractual clauses will be used for the work to ensure that any additional expenditure is minimised should a decision be made by the Houses to change the Programme in future.

The Parliamentary Buildings (Restoration and Renewal) Act 2019, which established the framework for the Restoration and Renewal (R&R) Programme, divides the Programme into two phases:

• Phase one includes preparatory works for the restoration and renewal of the Palace of Westminster
• Phase two covers the period between when Parliamentary approval is obtained for the main works and when it ends with completion of the Parliamentary buildings works.

Under section 7 of the 2019 Act, the two Houses are required to approve both the Delivery Authority’s proposals for the Palace restoration and a total funding envelope before the Programme can move to phase two.

The scope of the phase one works is considered to fall within the definition of preparatory works.

It is estimated that the cost of delaying starting the delivery phase of the Restoration and Renewal (R&R) Programme is around £70m per year at current prices. It is estimated that there would be a further £250m to £350m in the inflationary impact on construction costs across the whole of the Programme for each year of delay, based on current information.

The methodology underpinning the cost of delay is set out on page 124 in Annex 2 of the R&R Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576). This consists of: the compound impact of inflation over the Programme’s life (the £250m-£350m figure above); nugatory options development costs from this point; and additional reactive maintenance costs (above the current baseline).

The cost of delay was considered as part of the Independent Advice and Assurance Panel’s (IAAP) review, which was published alongside the report. The IAAP has advised that the calculation of the costs of delay is likely to be an underestimate because it is based on accepted figures where robust estimates are available – most notably for the inflationary increase in construction costs that arise from delayed implementation, which the IAAP considered to be reasonable, and realistic. While those specific figures were reasonable the IAAP advised that, in major asset management, it is well established that remediation costs often grow in real terms relative to avoided maintenance costs (when essential investments are postponed): they also advised that the likelihood of extreme events rises when complicated, interconnected systems are operated beyond their intended design life or usage parameters.

Separately to the cost of delay calculations, sensitivity analysis looking at the impact of construction inflation outstripping Bank of England forecasts was considered.

The cost of delay figures were estimated with regard specifically to the R&R Programme and do not include all ongoing maintenance within the Palace of Westminster, only the growth in reactive maintenance costs above the current annual baseline.

The recent report from the Restoration and Renewal (R&R) Client Board, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576), provides costs and schedules as ranges at different confidence levels (P50 and P80). This is in line with major programme best practice and guidance from the National Audit Office (NAO).

In addition, the R&R Programme carries out benchmarking against UK and international comparators.

The R&R works and construction costs have been benchmarked against 14 international Parliamentary projects and 18 heritage building projects, including Kings Cross Station regeneration, Manchester Town Hall, London Olympics, Crossrail (the Elizabeth Line) and others.

Benchmarking of cost estimates has also included benchmarking against other comparable types of work, for example asbestos removal (including in heritage sites), hospital mechanical and electrical work, or Salisbury cathedral stonework where appropriate; the types of cost and levels of risk allowed for in estimates against the Canadian Parliament and other comparable Parliamentary projects (including UK Parliament projects) and complex restoration projects; and management costs against other major programmes. Risk has been calculated and incorporated into estimates in line with Infrastructure and Projects Authority (now the National Infrastructure and Service Transformation Authority) and NAO guidance for programmes.

The inflation profile follows the Bank of England Monetary Report (November 2024) which remains constant at 2% from 2028/29 onwards in line with Bank of England targets. Sensitivity analysis looking at the impact of construction inflation outstripping Bank of England targets was also considered.

The R&R Programme has recognised the heritage, asbestos and live‑estate challenges inherent in the Palace, and elements of these risks have been incorporated into its contingency planning. However, the independent assurance findings indicate that some of these factors are not yet fully reflected in the quantitative modelling, and a portion of the remaining exposure is currently covered through Optimism Bias. As the design matures and further survey data becomes available in the proposed next stage of the works, the Programme will refine these allowances to ensure they are fully and accurately captured.

Under section 7 of the Parliamentary Buildings (Restoration and Renewal) Act 2019, the two Houses are required to approve both the Delivery Authority’s proposals for the Palace restoration and a total funding envelope before the Programme can move to phase two. Furthermore, under section 7(4), once that approval has been obtained, any significant subsequent changes to the design, timing or funding of the works would require further approval from the Houses.

Costs will be monitored closely throughout the delivery of the R&R Programme. Wider funding for the R&R Programme is subject to formal scrutiny from the Parliamentary Works Estimates Commission with input from HM Treasury, and audits by the NAO. The Public Accounts Committee can and has scrutinised R&R including its current inquiry announced in December 2025. The R&R Client Board, R&R Programme Board and R&R Delivery Authority Board also scrutinise costs to ensure value for money. Reports relating to R&R delivery and costs will continue to be publicly available, and there will be regular ongoing scrutiny by Members and Member-led Boards.

Section 2(5) of the Parliamentary Buildings (Restoration and Renewal) Act 2019, which established the framework for the Restoration and Renewal (R&R) Programme, requires the Programme to have regard to (amongst other things) the need to ensure the Parliamentary building works represent good value for money, the need for improved visitor access to the Palace of Westminster after completion of the works, and the need to ensure that educational and other facilities are provided for people visiting the Palace after completion of the works.

In 2024 the R&R Client Board considered the scope of the R&R Programme: that is, the improvements and benefits to be achieved in the end-state Palace, to which both Houses of Parliament will return. Having considered various scope levels, the Client Board decided against the most "transformational" scope but selected a scope which it agreed would deliver improvements while maintaining value-for-money.

While there are no standalone business cases for individual scope elements within the Palace, all such elements will be included within the Programme Business Case, which will follow a decision by the Houses on the preferred way forward. Chapter 7 of the R&R Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576) sets out the Client Board’s view on what the Houses should be invited to approve. The exact form and content of any motion put before the Houses is to be decided.

The preferred scope for all options under the Restoration and Renewal (R&R) Programme will deliver a fit-for-purpose and accessible visitor arrival space, including higher capacity security search and screen areas that will reduce the likelihood of queuing outside, A wide range of potential locations within the Palace were assessed for the search and screening facility, including enhancing the current arrangements. The search and screening facility is proposed within a structure that is already part of the broader programme of works to create new plant space. The location has been selected to improve secure routes through the Palace and support new accessible visitor routes. Because of this it would be difficult to construct in stages or to retain the current search and screening location for now and relocate it in future without significant disruption, inefficiency, or duplicated cost.

Overall security measures account for 3% of Palace construction costs across all options. This is set out in Annex B of the Restoration and Renewal (R&R) Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576).

In 2024 the Restoration and Renewal (R&R) Client Board (the two House Commissions meeting jointly) considered the scope of the R&R Programme: that is, the improvements and benefits to be achieved in the end-state Palace, to which both Houses of Parliament will return. Having considered various scope levels, the R&R Client Board decided against the most "transformational" scope but selected a scope which it agreed would deliver improvements while maintaining value-for-money.

The majority of the construction costs for the Palace relate to the priority areas which both Houses agreed for the R&R Programme in 2022 – namely, fire safety and protection, building services, asbestos, and building fabric conservation. 84% of the Palace construction costs for the full decant option and 86% of the Palace construction costs for the EMI+ option relate to these priority works. This is set out in Annex B of the R&R Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576).

The proposed education centre and works to improve public participation account for less than 1% of Palace construction costs under full decant and less than 3% under EMI+.

These works would largely be delivered through adaptations to existing spaces rather than wholly new construction, repurposing existing office space as an education centre for example. Overall, while these scope elements do introduce some additional complexity and cost, they do not fundamentally change the critical works required for programme or the associated risk. The removal or deferral of these elements is unlikely to deliver a material reduction in the headline cost range or decant duration as the underlying refurbishment and mechanical and electrical works would still be required in the areas being utilised.

We are currently negotiating a Sanitary and Phytosanitary (SPS) agreement and an agreement to link our Emissions Trading Schemes (ETS) and will not give a running commentary on the talks. The SPS agreement will cut costs and red tape for British producers and retailers, reducing consumer prices and increasing choice. ETS linking is expected to facilitate a cheaper path to net zero, reducing long-term costs for businesses. Combined, these measures are set to add nearly £9 billion a year to the UK economy by 2040.

The information requested falls under the remit of the UK Statistics Authority.

A response to the Hon lady’s Parliamentary Question of 15th July is attached.

We recognise the challenges these tariffs pose for the Falkland Islands. They stem from the fact the previous Government’s Brexit deal does not cover the Overseas Territories. The EU has been clear that they are not willing to re-open the fundamental terms of that deal. However, the UK and Falkland Islands governments have been working together on supporting the seafood sector, including securing US agreement to consider reducing tariffs on Falklands exports.

Information on public sector suppliers within a regional location and/or specific constituency is not held centrally. The Find a Tender service programme includes search and filter capabilities by location, supplier type and contract.

The information requested falls under the remit of the UK Statistics Authority.

A response to the Hon lady’s Parliamentary Question of 1st April is attached.

The Government is committed to supporting the sustainable growth of the UK's data centre sector reflecting their critical importance to the economy, public services and national security. A limited number of strategically important data centres may be supported through the Connections Accelerator Service (CAS) subject to the CAS Project Selection Process. The selection process includes due diligence from DBIST and an evaluation of the project alignment to government priorities including economic growth, jobs and net zero objectives. CAS provides enhanced engagement with network companies to identify opportunities to accelerate connections where possible, but it does not guarantee an earlier connection date.

Data centres are an enabling industry that supports employment, investment and economic growth across the UK. Data centres have been designated CNI which reflects their importance to the secure operation of digital services relied upon by businesses, public services and households. TechUK estimates that the sector supports 43,500 jobs, contributes £4.7 billion in annual GVA and generates £640 million in tax revenue. Each operational job may support a further 1.4 to 2.5 jobs across the economy.

The Government continues to work with industry to maximise local employment, skills and community benefits from new data centre developments.

The steel trade measure strikes a balance between securing the future of UK steel production and the impact on steel-using industries. The Government took, trade flows and existing trade remedies on relevant steel products into account when designing the measure. Explanatory Memoranda published alongside the legislation implementing the measure set out the expected impacts across the supply chain.

The TRA concluded both reviews referred to in March 2025 and August 2026 respectively, publishing their findings online. Neither included an assessment of the steel trade measure as there was either no data or insufficient data available. Existing trade remedy measures can also be reviewed if industry or the TRA believe there is sufficient evidence to warrant doing so.

The measure will apply only to product categories that can be made in the UK. In some instances, product codes contain both steel products that can and cannot be made domestically for technical reasons. Where this is the case, quotas have been designed to allow availability of these goods without unnecessary additional costs. Explanatory Memoranda published alongside the implementing legislation set out the expected impacts across the supply chain. We are closely monitoring the impacts, will continue to engage with businesses, and will review the full measure after 12 months.

The Government provides financial and advisory support to manufacturers operating in or relocating to the West Midlands through central government programmes and regional bodies. The West Midlands Investment Zone primarily offers tax incentives to businesses locating within designated sites, rather than direct relocation funding.

The West Midlands Growth Company (WMGC) can assist businesses in identifying appropriate land and premises, including Investment Zone sites where relevant. Businesses are encouraged to contact WMGC as a first point of contact for tailored inward investment support.

Data centres are critical national infrastructure, providing the computing power Britain needs for economic growth, public services and national security. The Government’s priority is to ensure the UK builds the capacity it needs, while communities hosting new infrastructure see clear benefits and local resources are protected.

Information on proposed and operational data centres is already held through planning authorities, network operators and other relevant bodies. There is currently no single national public register. We are working with industry, regulators and local authorities to strengthen the national evidence base and support better infrastructure and investment decisions.

The government has published a comprehensive assessment of the potential impacts of the right to guaranteed hours, which includes consideration of the potential impacts on employment.

Our analysis identifies young workers as a group more likely to benefit from the right to guaranteed hours. There is evidence that greater certainty over hours and income could make it easier for young people to return to the labour market. The reforms do not ban zero hours and similar contracts, and workers who value this flexibility will be able to remain on their existing arrangements by declining a guaranteed hours offer if they do not want one.

Government is working to determine the scope of these funds and will provide further detail on this and the application process in due course. It is Government’s intent to open these funds to applications in summer 2026.

The Government has held extensive consultations with industry to inform development of the new steel trade measure, including a Call for Evidence in July 2025, and will continue to engage with companies across the supply chain. The measure has been designed to strike a careful balance between supporting domestic steelmaking and maintaining secure, reliable supply so the UK can meet its defence and critical national infrastructure needs. We will continue to monitor the impact of the measure and review it after 12 months to ensure the balance is right between producers and downstream users.

The new steel trade measure has been designed to strike a careful balance between supporting domestic steelmaking and maintaining secure, reliable supply so the UK can meet its defence and critical national infrastructure needs. I have engaged closely with my counterparts in other departments, including in the Ministry of Defence, in designing the measure.

Our Steel Strategy sets out the action we are taking to improve the competitiveness of the sector, including on energy prices and trade.

We have introduced and expanded schemes to reduce the industrial electricity prices of energy-intensive industries, including steel. These are the British Industry Supercharger and the Energy Intensive Industries Compensation Scheme. From April 2027, the Government will also launch the British Industrial Competitiveness Scheme, which will include support for some steel companies. My joint portfolio as Minister serving the Department of Energy Security and Net Zero allows me to ensure that the two departments have a joint up approach on these issues.

We are also introducing a new steel trade measure to protect domestic steelmaking, given the sector’s importance to critical national infrastructure and defence and to build more resilience in the supply chain.

The new steel trade measure has been designed to strike a careful balance between supporting domestic steelmaking and maintaining secure, reliable supply for downstream users, including the makeup and length of the transitional arrangement to ease short term impacts. It is not possible to give an estimate of the volume and value of steel subject to contractual commitments before 14 March 2026 given that information is held by individual businesses. However, our measure design has been informed by last year’s Call for Evidence which attracted 100 responses from industry.

The measure has also been designed to only cover steel requirements that can be met in the UK. Where this is not feasible for technical reasons, for example where product codes contain both steel products that can be made in the UK and products that cannot be made, quotas sizes are being set with the aim of allowing continued availability of goods to UK downstream users without unnecessary additional costs. We will continue to monitor the impact of the measure and review it after 12 months to ensure the balance is right between producers and downstream users.

The new steel trade measure has been designed to strike a careful balance between supporting domestic steelmaking and maintaining secure, reliable supply for downstream users, including the makeup and length of the transitional arrangement to ease short term impacts. It is not possible to give an estimate of the volume and value of steel subject to contractual commitments before 14 March 2026 given that information is held by individual businesses. However, our measure design has been informed by last year’s Call for Evidence which attracted 100 responses from industry.

The measure has also been designed to only cover steel requirements that can be met in the UK. Where this is not feasible for technical reasons, for example where product codes contain both steel products that can be made in the UK and products that cannot be made, quotas sizes are being set with the aim of allowing continued availability of goods to UK downstream users without unnecessary additional costs. We will continue to monitor the impact of the measure and review it after 12 months to ensure the balance is right between producers and downstream users.

The Government held extensive consultations with both primary steel producers and downstream users to inform development of the trade measure, including a Call for Evidence in July 2025. We will continue engaging regularly with companies across the supply chain, through Ministerial and official level engagement, and will monitor implementation of the measure. This includes conducting a review after 12 months to ensure it remains effective and that the balance is right for both producers and downstream users.

The Government has carefully designed this measure to minimise downstream impacts while addressing the existential threat to UK steelmaking. Current production levels are being considered in our work to set quota sizes, and imports will continue to flow to maintain fair and competitive supply chains. We will closely monitor the impacts and will review the measure after 12 months to ensure the balance is right for businesses in all sectors, including aerospace, automotive, defence, energy and advanced manufacturing.

The government is committed to delivering an effective labour market that works for all. The number of payrolled employees remains near record highs, and the UK labour market remaining strong by international standards, with a higher employment rate than the EU, US and Canada.

The government is dedicated to supporting our small and medium-sized enterprises. The Government has already published our Plan for Small Businesses in July, setting out the measures that the government is taking to support small businesses across the UK.

UK businesses can also access our wide range of support via business.gov.uk.

The department monitors labour market trends closely and recognises pressures in sectors such as retail and hospitality.

We have introduced permanently lower business‑rates multipliers for retail, hospitality and leisure properties, introduced a £4.3 billion transitional support package and are bringing forward a new High Streets Strategy, to help reinvigorate our communities. In January, the government announced a major support package focused on business rates and licensing reform to help pubs facing sustained pressures with every pub receiving a 15% cut to new business rates bills, followed by a two year real-terms freeze. We have significantly increased the Hospitality Support Fund, with £10 million funding over three years, and have protected the smallest businesses and charities from the impact of the increase to employer NICs by more than doubling the Employment Allowance from £5,000 to £10,500.

To create more opportunities for young people at the start of their careers, we have expanded foundation apprenticeships into hospitality and retail.

Ministers continue to engage closely with industry through forums such as the Retail and Hospitality Sector Councils, and keep support under review, focusing on long-term resilience.

The Government has published a comprehensive package of analysis on the Employment Rights Act: Employment Rights Act 2025: impact assessments - GOV.UK.

This analysis shows that the Act is expected to benefit young workers significantly. The Government remains committed to implementing MWP in full to provide workers with greater security and to boost living standards across the country.

The Government has taken necessary decisions to restore public finances, while protecting smaller businesses. We are also supporting retail, hospitality and leisure sectors via business rate multipliers worth £1bn per year.